Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q2 2021 Earnings Presentation
31 slides from Millicom International Cellular's earnings presentation, Jul 29, 2021
Slide 1: Building momentum and delivering results
Building momentum and delivering results Second Quarter 2021 Mauricio Ramos, CEO Tim Pennington, CFO July 29th, 2021 Millicom International Cellular S.A.
Slide 2: Safe Harbor
Safe Harbor Cautionary Language Concerning Forward-Looking Statements Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives, expectations and intentions, projected financial results, liquidity, growth and prosp
Slide 3: Non-IFRS measures
Non-IFRS measures This presentation contains financial measures not prepared in accordance with IFRS. These measures are referred to as “non-IFRS” measures and include: non-IFRS service revenue, non-IFRS EBITDA, and non- IFRS Capex, among others defined below. Annual growth rates for these non-IFRS
Slide 4: 1. Q2 2021 Highlights
1. Q2 2021 Highlights
Slide 5: Highlights
Highlights 1 Double-digit growth 2 All business units growing 3 Home momentum building 4 Postpaid accelerating 5 Growth in all countries 5
Slide 6: Double-digit growth year-on-year… and above 2019
1 Double-digit growth year-on-year… and above 2019 YoY Growth1 Above 2019 Latam Latam ($m) 1,419 Service 1,358 10.9% 1,270 Revenue Q2 19 Q2 20 Q2 21 620 577 EBITDA 14.1% 544 Q2 19 Q2 20 Q2 21 1) Organic growth. Organic growth is a non-IFRS measure. Please refer to the non-IFRS disclosures in this pr
Slide 7: All business units growing
2 All business units growing Latam service revenue organic growth1 (%) Prepaid Home Latam 10.9% B2C Postpaid B2B 2.2% -0.4% -3.1% -6.8% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. 7 A reconci
Slide 8: Home momentum building
3 Home momentum building Penetration driving net adds Service revenue at new highs HFC customer relationship net adds (‘000) Latam Home service revenue1 ($m) 166 33% 146 95 94 99 103 100 63 75 416 30% 412 -47 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 19 20 20 20 20 21 21 Net Adds Network Penetration %
Slide 9: Postpaid accelerating
4 Postpaid accelerating Record postpaid net adds Above pre-COVID levels Latam postpaid net adds (‘000) Latam postpaid Mobile subscribers (m) 292 5.4 5.1 5.1 147 140 4.9 138 4.8 4.6 -443 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 9
Slide 10: Growth in all countries
5 Growth in all countries Latam service revenue local currency growth1 (%) Q2 20 - Q2 21 20% 15% 12% 11% 11% 11% 10% 9% 6% 4% El Bolivia Guatemala Panama Honduras Latam Nicaragua Colombia Costa Paraguay2 Salvador Rica 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation
Slide 11: Colombia continues standout performance
5 Colombia continues standout performance Record postpaid net adds Best Mobile network Colombia postpaid subscriber net additions (‘000) Tutela Colombia State of Mobile Experience Report June 2021 Player Player 220 1 2 Excellent Consistent Quality Core Consistent Quality Download Throughput Upload T
Slide 12: Panama successful integration
5 Panama successful integration Mobile growth from cross-selling Sustaining Home leadership Panama Mobile subscribers (‘000) Panama HFC Home customer relationships (‘000) Up 22% since acquisition Up 13% since acquisition Mobile 2,089 2,132 Acquisition Cable 1,957 Acquisition 1,838 1,744 1,766 1,776
Slide 13: Nicaragua growth led by network investment
5 Nicaragua growth led by network investment Expanding mobile customer base Service revenue recovery Nicaragua Mobile subscribers (m) Nicaragua service revenue ($m)1 Up 11% since 56 acquisition Mobile Acquisition 3.7 3.6 3.5 3.5 3.4 3.4 3.3 3.3 3.4 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2
Slide 14: 2. Q2 2021 Financial Review
2. Q2 2021 Financial Review
Slide 15: Group results summary – Q2 2021
Group results summary – Q2 2021 Group revenue to Latam service revenue1 bridge, Q2 2021 1,633 88 1,545 126 1,419 544 1,089 Group Guatemala Underlying1 Africa & Latam Telephone and Latam service Revenue & Honduras revenue Eliminations Revenue Equipment revenue1 Group operating profit to Latam EBITDA1
Slide 16: Latam service revenue – Q2 2021
Latam service revenue – Q2 2021 YoY organic growth for service revenue1($m) Q2 20 – Q2 21 +10.9% +11.7% 1,419 +3.0% +12.4% 1,270 +12.3% Q2 20 Mobile Home B2B FX and other Q2 21 B2C Service Revenue1 YoY organic growth 16 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentati
Slide 17: Q2 Latam service revenue by country
Q2 21 Latam service revenue by country1 Service revenue ($m), and YoY local currency growth2, Guatemala (24% of Latam) Honduras (10% of Latam) Panama (11% of Latam) El Salvador (7% of Latam) +12.2% +11.1% +11.2% +20.5% 341 137 151 98 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Colombia (23% of L
Slide 18: Latam EBITDA – Q2 2021
Latam EBITDA – Q2 2021 EBITDA1 ($m) +14.1% +14.0% 620 544 Q2 20 Revenue Direct Costs Sales & Marketing G&A and Q2 21 EBITDA Corporate Costs EBITDA 40.0% 40.1% EBITDA1 YoY organic growth EBITDA1 margin 18 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a descrip
Slide 19: Q2 Latam EBITDA by country
Q2 21 Latam EBITDA by country1 EBITDA ($m), and YoY local currency growth2, Guatemala (33% of Latam) Honduras (10% of Latam) Panama (10% of Latam) El Salvador (6% of Latam) +19.3% +17.5% +11.0% +50.9% 218 67 66 38 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 51.4% 54.4% 44.4% 45.3% 43.1% 42.1% 28
Slide 20: Investing to accelerate growth in Latam
Investing to accelerate growth in Latam Capex set to increase by $100-$200m in 2021 Latam HFC Home Customer Relationship Net Additions (‘000) +237 Home 265 installations 28 6M 20 6M 21 Latam HFC Homes Passed Net Additions (‘000) +55 Home coverage and 225 capacity expansions 170 6M 20 6M 21 Latam 4G
Slide 21: OCF on track to hit $1.4bn OCF full year target
OCF on track to hit $1.4bn OCF full year target Underlying ($m) 40 893 116 816 OCF1 H1 20 EBITDA Capex OCF1 H1 21 21 1) Non-IFRS measure. Please refer to the non-IFRS disclosures in this presentation for a description of non-IFRS measures. A reconciliation of non-IFRS measures to the nearest equival
Slide 22: Net financial obligations and leverage
Net financial obligations and leverage Underlying financial obligations1($m) 1,252 6,347 -224 5,319 36 169 62 5,095 153 Underlying Underlying Spectrum M&A FX & others Underlying net Leases Underlying net debt1 EFCF after debt1 Q2 2021 net financial YE 2020 leases1 obligations1 Q2 2021 Proportionate
Slide 23: Leverage improving, resuming shareholder remuneration
Leverage improving, resuming shareholder remuneration Leverage Shareholder remuneration Proportionate leverage1 Q1 20 – Q2 21 3.29 • Resuming SBB program 3.25 3.24 3.20 • Up to $100m 3.13 • Until May 2022 AGM • Continue deleveraging 2.89 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 23 1) Non-IFRS measure. Pl
Slide 24: 3. Closing remarks
3. Closing remarks
Slide 25: An outstanding Q2
An outstanding Q2 Investing in the business Growth accelerating OCF on track Resuming buybacks 25
Slide 26: Q&A
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Slide 27: Group Financial highlights – Q2 2021
Group Financial highlights – Q2 2021 IFRS Group Consolidated Financial Statements1 Selected P&L data Key Observations $ million Q2 2021 Q2 2020 % Var •A Increased commercial activity Revenue 1,089 970 12.3% Cost of sales (312) (296) 5.3% •B Reduced gross debt Operating expenses (403) A (330) 22.0% D
Slide 28: Debt Maturity Schedule
Debt Maturity Schedule Q2 21 Average maturity 5.7 Years Average cost of debt 5.46% 830 807 721 685 672 626 606 529 459 29s $675m Cable Telecel 6.250% Onda $550m $600m 26s 28s 4.500% 31s 5.875% $450m $450m $500m 6.625% 5.125% 4.500% 124 SEK 2bn 78 4.913%* 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 29: Capital structure
Capital structure Financial obligation profile June 30th, 2021 Latam HQ Africa Geography 63% 32% 5% Bonds Banks Leases Source 57% 26% 17% Interest Fixed or Swapped Variable rates* 80% 20% FX Local Other exposure* 46% 54% Less than 5Y 5Y or more Maturity* 35% 65% * Excluding Leases. El Salvador's off
Slide 30: Financial obligations by country
1 Financial obligations by country Central America Africa Corporate Group (underlying) South America Gross: $2,466m Gross: $389m Gross: $2,341m Gross: $7,388m Gross: $2,191m Net: $2,092m Net: $364m Net: $1,910m Net: $6,347m Net: $1,980m Of which Leases: $1,252m Guatemala: Gross: $625m Net: $439m Hon
Slide 31: Millicom - The Digital Lifestyle
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